Price growth cooled more than expected in February, before Trump ramped up tariffs
The president took office promising to immediately lower inflation, but economists say his expanding trade war threatens progress on price hikes.
Price growth cooled more than expected in February, a welcome sign for markets that have been spooked by the specter of persistent inflation, though evolving U.S. trade policies complicate the outlook.
The consumer price index rose 2.8% in February from the year before, less than forecast and slower than the 3% annual rate in January, the Bureau of Labor Statistics reported Wednesday.
Inflation climbed 0.2% from January to February, down from January's 0.4% monthly rate and beating expectations of 0.3%. The decline was led by a sharp decrease in airfares, which fell 4%, and new vehicle prices, down a modest 0.1%.
Housing costs saw the smallest 12-month increase since December 2021, rising 4.2%. Egg prices were up 58% from a year earlier but have already begun falling this month.
A customer shops at a grocery store in Austin, Texas, on Feb. 12.Brandon Bell / Getty ImagesStock futures initially surged on the report, then retreated. And demand for government Treasury bonds actually weakened despite the better-than-expected CPI reading.
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